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Why Are Some Risks Diversifiable and Some Non-Diversifiable? Give an Example

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Why are some risks diversifiable and some non-diversifiable? Give an example of each.


Definitions:

Case Law

Law established by judicial decisions in particular cases, instead of by legislative statutes or executive actions.

International Law

A body of rules, agreements, and treaties that are legally binding between countries, governing their conduct and relations on a global scale.

Trade

The voluntary exchange of goods, services, or both among parties.

Technology

The application of scientific knowledge for practical purposes, especially in industry and everyday life.

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